Red Fly Studios has laid off 30 staff members after a high profile project was reevaluated and then canceled.

“Red Fly has been an agile, passionate company from day one, and while this news was very difficult, we've made a concentrated effort to reinvest in ourselves and the way we want to make games. Currently, we are all very excited about our new opportunities and working diligently to make them a reality,” says Red Fly Studio CEO, Dan Borth.

The Austin Texas based studio, is best known for the Mushroom Men games for the Wii and DS,  as well as the Nintendo consoles versions of Ghostbusters: The Video Game, Star Wars: The Force Unleashed II, and the recent Thor: God of Thunder.